Top Global Issues Facing CEOs in 2024 and Beyond

In 2024, whether you’re brand new to the role or have years of experience, CEOs are navigating the same landscape marked by unprecedented challenges and opportunities. These issues are becoming more than just fleeting concerns, they are transformative forces that will shape the future of organisations across the public, private and not for profit sectors in the UK and beyond and shape how decisions will need to be made. Below is the lowdown on some of the most pressing issues confronting CEOs across the UK and internationally.

Economic Uncertainty

The global economy remains in a state of flux, with persistent inflation, fluctuating interest rates, and the potential recession risks creating a volatile environment. For the public and social sectors, economic instability has direct implications on funding, resource allocation, and service delivery.

• Impact on Funding: Charitable donations in the UK dropped by 16% in 2023, reflecting broader economic pressures. Public sector budgets are similarly strained, with governments facing difficult choices between austerity and investment.
• Strategic Response: CEOs must focus on financial resilience, seeking diversified funding sources and optimising operational efficiency. Engaging in scenario planning and building financial buffers are critical to sustaining services and impact during economic downturns.

Technological Advancements and Digital Transformation

The rapid pace of technological change continues to reshape industries. For the public and social sectors, digital transformation offers both opportunities and challenges.

• Digital Inclusion: While digital tools can enhance service delivery and reach, there is a risk of exacerbating inequalities. In the UK, 9 million people struggle to use the internet independently, highlighting the digital divide that is yet to be fully addressed.
• Cybersecurity: With increased digitalisation comes heightened cyber risks. The UK’s National Cyber Security Centre reported a significant rise in cyberattacks on public sector organisations in 2023, underscoring the need for robust cybersecurity frameworks.
• Strategic Response: CEOs must champion digital inclusion, ensuring that technological advancements benefit all stakeholders. Investing in cybersecurity, fostering digital literacy, and integrating AI ethically into operations are key priorities to ensure regardless of the sector, organisations are future-proofed and ready to adapt to the digital revolution.

Diversity, Equality, and Inclusion (DEI)

Promoting diversity, equality, and inclusion remains a critical challenge, particularly in sectors that directly serve diverse populations.

• Workplace Representation: Despite progress, women and ethnic minorities remain underrepresented in leadership positions across the UK’s public and social sectors. A 2023 report found that only 15% of charity CEOs were from ethnic minority backgrounds, highlighting the need for more inclusive leadership
• Equity in Services: DEI is not only an internal matter but also a service delivery imperative. Ensuring that programmes and services are accessible and equitable is crucial for maintaining public trust and effectiveness.
• Strategic Response: CEOs must lead by example in promoting DEI, implementing comprehensive strategies that address both workforce diversity and equitable service provision. This includes regular audits, inclusive recruitment practices, and fostering a culture of belonging.

Talent Management and Workforce Dynamics

The nature of work is evolving, and with it, the expectations of the workforce. This is particularly relevant in sectors where mission-driven work must be balanced with sustainable talent management practices.

• Remote Work: The shift to remote and hybrid working models has become a permanent fixture. In the public sector, nearly 40% of employees continue to work remotely, which requires new approaches to management and employee engagement.
• Skills Shortage: There is a growing skills gap, particularly in areas such as digital skills, project management, and social care. The UK faces a shortage of 250,000 skilled workers in these areas, putting pressure on organisations to invest in upskilling and reskilling.
• Strategic Response: CEOs must adapt to new workforce dynamics by fostering a flexible, inclusive work environment. This includes investing in continuous learning opportunities, supporting employee well-being, and developing talent pipelines that align with future needs.

Sustainability and ESG

Environmental, Social, and Governance (ESG) considerations are no longer optional or a simple box-ticking exercise; they are integral to organisational legitimacy and long-term success.

• Regulatory Pressures: Governments worldwide are tightening regulations on carbon emissions and sustainability reporting. The UK’s mandatory climate-related financial disclosures for large businesses, including public sector bodies, came into effect in 2023.
• Public Expectations: Stakeholders increasingly demand transparency and action on ESG issues. In a recent survey, 75% of UK citizens indicated they are more likely to support organisations committed to environmental sustainability.
• Strategic Response: CEOs must embed ESG into their organisational strategy, not just as a compliance requirement but as a core value. This involves setting ambitious sustainability goals, ensuring ethical governance, and reporting progress transparently.

Geopolitical Risks

Global geopolitical tensions continue to pose significant risks, affecting everything from supply chains to international cooperation.

• Global Instability: Conflicts and trade tensions have disrupted global supply chains, with repercussions felt across all sectors. The ongoing war in Ukraine, for example, has led to a 30% increase in energy costs in Europe, impacting public services and charitable operations.
• Regulatory Divergence: Increasing regulatory divergence between regions, especially between the UK and the EU post-Brexit, creates additional complexity for organisations operating across borders.
• Strategic Response: CEOs need to build organisational resilience by diversifying supply chains, engaging in proactive risk management, and maintaining strong international relationships. Understanding and navigating the regulatory landscapes across different regions is also crucial.

The challenges facing CEOs in 2024 are complex and multifaceted, requiring a proactive, strategic approach. Whether in the public sector, charities, or social enterprises, leaders must navigate economic uncertainty, embrace technological change, commit to sustainability, champion DEI, manage evolving workforce dynamics, and mitigate geopolitical risks. By addressing these issues with foresight and resilience, CEOs can not only sustain their organisations but also drive meaningful impact in an increasingly uncertain world.

For more insight, advice and details of our forthcoming events please contact rebecca.oconnor@starfishsearch.com